Are you headed for graduate or 

professional school and wondering how 

to pay for your education?

Federal Student Aid, a part of the U.S. Department 

of Education (ED), is the largest provider of student 

financial aid in the nation. We offer more than $150 

billion each year to help millions of students pay 

for higher education. Be aware of the myths and 

get the facts about financial aid from this brochure, 

where you will find an overview of ■ the federal financial aid programs for graduate 

and professional degree students;

■ the basic eligibility requirements; ■ how to apply for financial aid; ■ where to find other sources of aid (state, school, 

and scholarship); and 

■ the key items to consider before taking out a 

student loan.

Myths and Facts 

Myth: Parents’ personal and financial information 

must be reported on the Free Application for 

Federal Student Aid (FAFSASM). 

Fact: In almost all cases, graduate and professional 

degree students are considered independent 

students and are not required to supply parent 

information on the FAFSA. 

Myth: It takes hours to complete the FAFSA and it’s 

expensive.

Fact: Completing the FAFSA online is easy and free. 

Recent statistics show that it takes an average of 17 

minutes for independent students to complete it. 

You can complete the FAFSA at www.fafsa.gov.

Myth: Private loans from my bank or credit union 

are as desirable as federal student loans.

Fact: There are key differences between federal 

loans and private loans. Federal student loans offer 

several repayment plans, including an option to tie 

your monthly payment to your income. Learn more 

about the differences between federal and private 

student loans at StudentAid.gov/federal-vs-private.

Which types of federal student aid can I 

receive?

Graduate and professional degree students may 

be eligible to receive aid from the following federal 

student aid programs: ■ The William D. Ford Federal Direct Loan (Direct 

Loan) Program—This is the largest federal 

student loan program. Under this program, 

ED is your lender rather than a bank or other 

financial institution. There are two types of 

Direct Loans that graduate and professional 

degree students may receive:

•	Direct Unsubsidized Loans—Eligible 

students may borrow up to $20,500 per 

school year. Graduate and professional 

students enrolled in certain health 

profession programs may receive additional 

Direct Unsubsidized Loan amounts each 

academic year. Contact your school’s 

financial aid office for details.

•	Direct PLUS Loans—Eligible graduate 

and professional degree students who 

need to borrow more than the maximum 

unsubsidized loan amounts to meet their 

education costs may apply for a PLUS loan. 

A credit check will be performed during the 

application process. 

■ Federal Perkins Loan (Perkins Loan) Program—

This is a school-based loan program for eligible 

students with exceptional financial need. You 

may qualify for a Perkins Loan of up to $8,000 

each year depending on your financial need, 

the amount of other aid you receive, and the 

availability of funds at your school. 

■ Teacher Education Assistance for College and 

Higher Education (TEACH) Grant—The TEACH 

Grant Program provides grants of up to $4,000 

a year to students who are completing or plan to 

complete course work needed to begin a career 

in teaching. The TEACH Grant is different from 

other federal student grants in that it requires 

you to take certain kinds of classes to get the 

CONTACTS

PROUD 

SPONSOR 

OF THE 

AMERICAN 

MIND

TM

StudentAid.gov

Find detailed information about federal student 

aid and the FAFSA application process. The 

site includes helpful publications and tools for 

managing Direct Loans. 

www.StudentLoans.gov

Get more information about completing the 

Master Promissory Note, Direct PLUS Loan 

requests, and entrance counseling. 

www.nslds.ed.gov

National Student Loan Data System (NSLDS

®

)

For information about all of your federal 

student loans and federal grants, visit NSLDS. 

Note that NSLDS does not include information 

about any private loans you may have received. 

Stay connected: 

/FederalStudentAid

/FAFSA

/FederalStudentAid

Printed: November 2012

Cover photo: U.S. Department of Education

Note: The information in this document was compiled in 

the fall of 2012. For updates or additional information, 

visit StudentAid.gov or phone 1-800-4-FED-AID.

Financial 

Aid

for Graduate and 

Professional Degree Students
grant, and then to do a certain kind of job to keep 

the grant from turning into a loan.

■ Federal Work-Study (FWS) Program—The 

Federal Work-Study Program provides part-time 

jobs for undergraduate and graduate students 

with financial need. This program allows you to 

earn money to help pay education expenses. The 

program encourages community service work 

and work related to your course of study. 

■ Federal Pell Grant—A Federal Pell Grant, unlike 

a loan, does not have to be repaid. You may be 

eligible to receive a Federal Pell Grant if you 

are enrolled in a postbaccalaureate teacher 

certification program. Amounts can change yearly.

Note: Not all schools participate in the 

federal student aid programs or offer all the 

types of aid described above. To learn more 

about the federal student aid programs, 

contact your school’s financial aid office 

and visit StudentAid.gov/types.

What are the eligibility requirements?

To qualify for federal student aid (grants, loans, and 

work-study funds), you must meet certain 

requirements. Some of our general eligibility 

requirements are that you must demonstrate 

financial need (for most programs), be a U.S. 

citizen or eligible noncitizen, be enrolled or 

accepted for enrollment as a regular student in an 

eligible degree or certificate program, and more. 

Make sure you’re familiar with our basic eligibility 

criteria, and, if you have any questions about 

whether or not you qualify, contact your school’s 

financial aid office. Learn more about the basic 

eligibility requirements for federal student aid at 

StudentAid.gov/eligibility.

How do I apply for aid?

To apply for federal student aid, you first need to 

complete the FAFSASM. Many states and colleges 

use your FAFSA data to determine your eligibility for 

state and school aid, and some private financial aid 

providers may use your FAFSA information to 

determine whether you qualify for their aid.

Don’t Pay Money to Complete 

the FAFSA!

The FAFSA is a free application. Fill it out at 

www.fafsa.gov. Other sites may charge you.

What other types of financial aid can 

I receive?

Aid From Other Federal Agencies

To find out about funding from agencies other than 

ED, visit StudentAid.gov/types. 

State Aid 

Many states offer assistance for graduate or 

professional school. Find state grant agency contact 

information at www.ed.gov/sgt.

School Aid

Statistics show that schools may provide nearly as 

much student aid as the federal government does. 

To find out what aid your school offers, contact the 

financial aid office as well as a faculty member in 

your area of study.

Where else should I look for funding? 

Check out the following sources for additional funding:

■ The Internet (there is a free scholarship search 

from the U.S. Department of Labor at 

www.careerinfonet.org/scholarshipsearch)

■ The reference section of your school or public 

library

■ Foundations, organizations (e.g., religious, 

community, professional, ethnicity-based), local 

businesses, and civic groups

■ Your employer

■ Your state vocational rehabilitation agency, if 

appropriate (a list of state agencies is at 

www.ed.gov/svr and at www.disability.gov)

Key points to consider when taking out a 

student loan

✓ Finance your education with free money first 

(scholarships and grants), then earned money 

(work-study), and, finally, borrowed money (federal 

student loans). 

You don’t have to repay scholarships, grants, or 

work-study funds. When accepting the aid offered 

by your school, keep in mind that you don’t have to 

accept the full loan amount offered. You may 

request and borrow a lower amount.

Don’t forget to research the potential tax 

benefits of higher education at the Internal 

Revenue Service’s website at www.irs.gov.

✓ What is the source of the loan? Is it a federal loan 

or a private student loan?

Student loans can come from the federal government 

or from private sources such as a bank or financial 

institution. Learn more about the differences between 

federal and private student loans at StudentAid.gov

/federal-vs-private.

✓ What are the terms and conditions of the loan?

It’s important to understand what you’re signing up 

for. Understand the terms of your loan and keep 

copies of your loan documents. The Master 

Promissory Note (MPN) is the legal document you 

must sign to receive a federal student loan. When 

you sign your promissory note, you are agreeing to 

repay the loan according to the terms of the note 

even if you don’t complete your education, can’t get 

a job after you complete the program, or you don’t 

like the education you received. 

✓ How will the amount you borrow in student 

loans affect your future finances, and how much 

can you afford to repay?

Your student loan payments should be only a small 

percentage of your salary after you graduate, so it’s 

important not to borrow more than you need for 

your school-related expenses. Plan and budget for 

now and for the future. And learn about IncomeBased Repayment and other student loan 

repayment plans at StudentAid.gov/repay-loans

/understand/plans. Use the financial aid awareness 

counseling tool at StudentLoans.gov.

✓ Have you heard about Public Service Loan 

Forgiveness (PSLF)?

Under PSLF, you may be eligible to have some 

portion of your loans forgiven if you work in public 

service. Learn about our loan forgiveness 

programs at StudentAid.gov/publicservice.

Additional Resources for 

Postgraduate Study

■ Find a graduate school at 

www.nces.ed.gov/collegenavigator.

■ Learn about admissions tests for 

graduate or professional school at 

StudentAid.gov/prepare-for-college/tests.